Even as the bellwether indices closed flat for the week amidst concerns over global slowdown, select stocks managed to deliver stellar returns over the week, bucking the broad market weakness.

One stock that topped the returns chart over the past week is Hikal Chemicals, gaining about 20 per cent, in five trading sessions. Interestingly, the company posted poor performance in the June quarter, with revenue declining 17 per cent year on year to ₹379 crore. Operating profit tanked 76 per cent to ₹23 crore. The lacklustre performance was largely on account of closure of its Taloja plant, consequent to a notice from Maharashtra Pollution Control Board (MPCB), which resulted in a revenue and gross profit impact of ₹50 crore and ₹20 crore.

The rally follows a favourable judgment by the Bombay High Court, where the company had filed a writ petition challenging MPCB’s closure notice for Taloja plant. Operations have commenced at the plant and will stabilise over the next few quarters, according to the management. Also, softening of raw materials, which are largely crude derivatives, is expected to aid margins in the upcoming quarters. This has helped the up-move in the stock price.

The other winner this week is Adani Power. The stock of India’s second largest private sector power generation company has gone up over 19 per cent since August 12. The sharp rally is on two counts. First, the company reported robust performance in the June 2022 quarter.

Revenue more than doubled to ₹13,723 crore, compared to the same period last year. Operating profit more than trebled to ₹7,505 crore vis-à-vis ₹2,291 crore last year. Strong operating performance, coupled with lower interest costs, aided the 17-fold increase in net profit to ₹4,779 crore, compared to ₹278 crore last year.

The stock of chemical producer Gujarat Alkalies and Chemicals gained about 15 per cent for the week. The rally was helped by the company’s impressive performance in the June quarter. Revenue grew 57 per cent year on year to ₹1,128 crore, compared to ₹716 crore last year.

Healthy realisation for products, coupled with a moderate increase in raw material costs, helped the company’s strong operating performance. Operating profit jumped 2.6 times to ₹387 crore as against ₹147 crore last year. Net profit more than trebled to ₹190 crore vis-à-vis ₹63 crore in June 2021 quarter.

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